Mr. Michael Cooper reports

DREAM ALTERNATIVES ANNOUNCES FIRST ACCRETIVE RENEWABLE POWER ACQUISITIONS, ACCRETIVE LOAN INVESTMENTS & APPROVAL OF SEPTEMBER 2014 DISTRIBUTION

Dream Hard Asset Alternatives Trust has agreed to make its first renewable power investments which are expected to generate over a 12-per-cent return on $20.1-million of invested equity. In addition, the trust has agreed to advance approximately $30-million of new mortgages which will generate interest in the range of 6 per cent to 10 per cent on an annual basis. All of the transactions are expected to be accretive to the trust's current cash flows, and are in line with the stated portfolio strategy and objectives of the trust.

The trust's board of trustees has appointed David Kaufman as chair of the board effective immediately and has declared a monthly distribution of 3.33 cents per unit payable on Sept. 15, 2014, to the unitholders of record on Aug. 29, 2014.

"We believe the trust is on track or better than what we modelled in our underwriting prior to the closing of the reorganization. We are pleased with the assets that have been transferred to Dream Alternatives," said Michael Cooper, portfolio manager. "We are actively pursuing opportunities to repatriate capital from existing investments in order to reinvest the proceeds in hard asset alternative investments that we believe will increase the trust's cash flow and value."

Details on the renewable power acquisition

The trust has conditionally agreed to acquire interests into two Ontario rooftop solar projects and two Nova Scotia community wind projects owned or arranged by its asset manager, Dream Asset Management Corp. (DAM), at its out-of-pocket cost. To date, DAM has invested $4.7-million of equity and $1.6-million in letters of credit in these projects. The total equity investment required by the trust for this portfolio of renewable power projects (including the $4.7-million) is expected to be $20.1-million, which will be substantially financed by December, 2014. The transaction has been conditionally approved by the board of trustees of Dream Alternatives provided that the trust receives independent valuations for these renewable power projects confirming that the current fair market value of these projects are at least equal to the cost provided by DAM.

The projects are currently in various stages of development and operation. By August, 2015, it is expected that all four projects will be operational, providing an estimated cash-on-cash yield of 12.4 per cent on the $20.1-million of equity invested by the trust over the entire contract term of 20 years. Prior to August, 2015, the expected cash-on-cash yield is expected to be in the range of 6.6 per cent to 6.8 per cent. Each of these acquisitions is subject to the satisfaction of customary conditions. Each of the Ontario solar projects have an FIT contract that allows for the sale of solar electricity to the Ontario Power Authority for a fixed price for a term of 20 years. Each of the Nova Scotia wind projects has a community feed-in tariff (ComFIT) contract which provides for the sale of electricity to Nova Scotia Power Inc. (Nova Scotia's regulated utility) at a fixed price for a term of 20 years. Accordingly, the cash flows generated from these projects increase the secure, long-term cash flow generation ability of the trust and significantly reduces the trust's reinvestment risk. Three of the four projects have community or aboriginal partners and will benefit from participation in development and a share in project cash flows.

Details of the individual projects are noted in the table.

                         Contract term                                      
                                  with                                      
                            provincial  Commercial         Share of   Total equity
                             regulated   operation         capacity  requirement --
Project                        utility        date           (MW)       millions

Ontario rooftop solar         20 years  January, 2014         0.7           $3.5
Ontario rooftop solar         20 years  December, 2014        1.7           $6.0
Nova Scotia ComFIT wind       20 years  August, 2015         10.6           $7.9
Nova Scotia ComFIT wind       20 years  December, 2014        3.1           $2.7
Total                                                        16.1          $20.1

Mortgage loan investments

Since the trust's creation on July 8, 2014, it has entered into commitments to advance $30-million of mortgages at interest rates ranging from 6 per cent to 10 per cent. Details of three of the larger mortgages (at the trust's proportionate share) are detailed below:

• $14.1-million first mortgage construction loan for a term of 18 months to a Vancouver-based developer. The loan bears interest at 6 per cent per annum. The loan is secured by a 6,100-square-foot site in the eastern edge of Gastown, on which a substantially presold nine-storey condominium project will be constructed containing 61 residential units and ground floor retail space;
• $8.5-million, which begins as a first mortgage and ranks behind a construction mortgage if not previously repaid. The term of the loan is for up to 24 months and the interest rate is 9 per cent. The loan is secured by a student residence condominium project that is 97 per cent presold;
• $4.5-million second mortgage on a development site in midtown Toronto. The loan bears interest at 10 per cent for a term of three years.

Revolving credit facility

As previously disclosed in the final prospectus, Dream Alternatives, through its subsidiary Dream Alternatives Master LP, has secured a line of credit facility from a Canadian financial institution. The total facility is for a maximum of $50-million. It is management's intention to use the operating line so that the trust is not required to maintain cash reserves and to bridge potential timing gaps between making new investments and the repayment of existing ones. Management does not intend to use the line to increase the trust's overall leverage.

Appointment of chair person

The trust has appointed David Kaufman as chair of the board of trustees effective immediately. Mr. Kaufman is the president and chief executive officer of Westcourt Capital Corp. and has more than 20 years of experience in the legal, real estate and investment industries. After graduating from the University of Toronto's faculty of law, Mr. Kaufman gained his real estate and private equity experience with Magna Golf Club, Menkes Developments and Lynx Equity. Mr. Kaufman then founded Westcourt Capital in 2009 with a focus on sourcing and conducting due diligence on capital-protecting alternative investment managers and funds. Mr. Kaufman is a member of the Law Society of Upper Canada and is a CAIA (Chartered Alternative Investment Analyst) charter holder. Mr. Kaufman writes a biweekly column, "Alternative Investor," for the Financial Post, and is a regular contributor and co-host on CBC's Lang & O'Leary Exchange. Mr. Kaufman was also a regular host of BNN's "Alternative Investing." Mr. Kaufman is an independent board chair.

Approved distributions for September, 2014

The board has approved a monthly distribution payable on Sept. 15, 2014, in the amount of 3.33 cents per unit. The distribution will be paid to unitholders of record on Aug. 29, 2014.

A conference call for the trust will be hosted by Mr. Cooper at 4 p.m. EST on July 29, 2014. Call in details are below:

• Tuesday, July 29, 2014, at 4 p.m. (ET);
• Dial: for Canada and United States please dial: 1-866-229-4144;
• For international please dial: 416-216-4169;
• Passcode: 7814 977.

We seek Safe Harbor.